[00:00] What do you remember when you think of trading in the stock market? Stocks can be traded for intraday, long term, swing trading, And indexes like Nifty, Bank Nifty, Fin Nifty,
[00:13] But have you ever thought that we can trade in the commodity market too? In that too, we trade only crude oil, gold, silver, natural gas,
[00:26] and we see many traders who are changing their regular income into stock market world. Understanding the global economy and supply and demand. It is simple to understand, but it is a good concept when we talk about it in broad perspective.
[00:41] understanding the supply and demand related to the commodity you trade, trading in commodities is better than trading in equities.
[00:53] Because in equities, we have dividend, stock split, bonus, buyback, rights issue, some big investors are trading, when compared with last quarterly numbers,
[01:06] inside trading, Demand and supply. it is a beautiful concept.
[01:18] And if you can track the seasonality of the global conditions, that's enough. Who wants to keep it simplified? It starts from 9 and ends at 9.15.
[01:34] 6 hours and 15 minutes is the time of equities market. But the commodity market starts at 9 in the morning and lasts till 11.55. people who want to do it completely in their free time,
[01:47] In fact, there are many people who depend completely on the commodity trading. In our beginner's course, I mentioned to you in detail about these commodities markets
[02:00] My intention is to give you all the content you need in one video You watch the video, right? It means we are going to talk a lot in this.
[02:15] we have a scope to make 2-3 videos on these commodities. I want to go ahead in this. after knowing all this, you answer below.
[02:30] Okay, if I leave it like that for such a big video, So, I will tell you the 10 topics I am going to cover in this video. First, let's know what commodities are and why did commodity trading come?
[02:45] We will get the timing in this. When does the commodity market start and when does it end? Let's talk about these here.
[02:58] we will get things like bullion market, gold, silver, And energy like crude oil, natural gas,
[03:10] Then, when I trade in the commodity market, For almost 6 months to 1 year. But, in the evening, after the market was over,
[03:24] So, what are the elements that I tracked at that time? You don't have to see everything in one way. Then, like Nifty and Bank Nifty,
[03:36] there are indexes here too. How much money do you need to trade? You should observe the events that you want to trade in the commodity market.
[03:52] If they are coming, there will be volatility. So, which events you should track? I know about price action.
[04:07] Will all these work in the commodity market or not? We will talk about contracts and all that.
[04:19] We will talk about the entire topic here. What are the topics that are there? Or, there are some elements related to psychology pending.
[04:34] I will take your answer and end the video. if you think our efforts are valuable, I am sure that we won't get anything additional because of the likes.
[04:49] For those who are searching for this related content, YouTube is trying to promote this video to the other 4 people. At least, at any point of the video,
[05:02] please like the video and encourage our efforts. Why did we come up with this concept? Crude oil, natural gas, gold, silver, aluminium.
[05:16] Friends, many companies use metals and energy as raw materials. Or, simply, what stocks do we get when crude oil increases?
[05:28] Because, the aviation turbine fuel cost they use in flights increases. Why do auto companies fall? people who want to buy cars and bikes will use public transport at this rate.
[05:45] Many companies like cement and fertilizer companies use it as raw material. Titan and Kalyan Jewellers have gold raw materials. Tell me, when their raw materials cost increases in the upcoming times,
[06:00] or, let's say, the raw materials they have are their entire value. If the gold price suddenly drops by 10%, 20%, 30%, So, when a price is increasing or dropping,
[06:15] this is a commodity market to protect them against it. You are farming wheat and wheat fields. Let's say, wheat is at Rs. 100 per kg.
[06:28] What if the wheat price drops in the upcoming times? If you want to sell your crop at the same price for the next two months, You will sell the wheat futures in the commodity market.
[06:43] you will get an advantage in the futures. If the price is increasing, there will be a loss in the futures. The price you sell after you get your crop is higher than the price you expected.
[06:58] The loss that you get if you sell your crop, will be equal to the profit that you get for selling it at a higher price. So, from the people who run a big company,
[07:11] no matter who it is, the material related to your field is increasing or decreasing, It is there to hedge.
[07:23] There are updates regarding the economy, technical analysis, and day-to-day events. To capture that price, traders choose the commodity market.
[07:36] What is the difference between equity and commodities? The timing is different. Whereas, these are there from 9.00 am to 11.55 am.
[07:50] Commodities end before evening in our equity markets. We can hold the stocks in our D-mat account even if we hold them for a lifetime.
[08:03] But, there is nothing in the commodity market that we can keep for a lifetime. Both have the same technical analysis. But, the fundamental aspects are different.
[08:16] stocks, players, rights, they are losing their mode, they are the market leaders. These are the margins.
[08:30] There won't be so many factors in our commodities. Like, the FED are increasing the interest rates. Issues have started in China.
[08:43] Those particular data elements will impact the set of commodities. Can we cover fundamental analysis in a video? And, there is a concept of demand and supply, it works well in commodities.
[08:56] I can manipulate the stocks from 100 crores. But, we can't manipulate the commodities.
[09:08] Everyone should buy at the same price. We track the global commodity prices that are traded here.
[09:20] We can manipulate the stocks. They won't maintain the complexity. We understand the reason behind the growth and decline.
[09:32] Most of the time, 60-70% of the time, We maintain the trend. If it falls, it will keep falling.
[09:47] If gold prices are also once breaking out, They are in consolidation for a long time. there will be a constant, directional and trending move.
[10:03] So, there are different aspects of the equity markets and the commodity markets. Support and resistance, starting, and all those aspects like channels, trend lines, patterns,
[10:16] we can apply all these to these. Friends, these commodity markets are related to international timings. infact, many of us don't do agri commodities.
[10:30] the agri commodities linked to international prices and close at 5 in the evening. But, the gold, silver, crude oil, natural gas that we usually trade,
[10:42] and open till 11.55 at night. So, usually, the equity markets, who think they have a lot of free time after evening,
[10:57] They will touch only a few of them. many trade natural gas. many people trade and track copper.
[11:09] the MCX people also announce trading holidays. I will also give you a link to the holidays in the description.
[11:21] how we have NSE and BSE related to stocks, But, the reality we call as exchange,
[11:33] Multi-Commodity Exchange. There were updates recently that commodities are being traded more. the stock price increased when they were growing stronger.
[11:49] many people come to the commodity market and trade. MCX as a company will be profitable. There are metals and agri related commodities in it.
[12:04] When we talk about commodities, When you are starting the commodities market, MCX is Multi-Commodity Exchange,
[12:19] NCDEX is National Commodities and Derivatives Exchange Limited. Friends, I strongly suggest, I will show you an important website.
[12:32] After this video, if you are interested in commodities, you can open your own system and see what I am showing you. Home, Market Data, Products.
[12:46] BullDex, MetalDex, EnergyDex. because you will understand it if you understand these. Bullion is Gold and Silver.
[13:03] but here, when you see it in trading, Gold, Gold Mini, Gold Guniya, Gold Petal. What is Bullion in overview?
[13:19] and types of difference in Silver, In Gold, only Gold bars, big bars are visible. Gold Guniya, is visible in smaller size than these smaller bars.
[13:34] So, this is in decreasing order. how much weight is there in Gold Mini, We can know that individually by going inside.
[13:48] is there a download product called Leaflet? At the start, they will give you information about Gold, and the difference between futures and options.
[14:02] If you get a Feb contract, Then, it will be in May, June. It will be in September, October.
[14:15] So, there is a Gold contract every two months. you are buying 1 kg of Gold. you are carrying 1 kg of Gold.
[14:29] Gold Mini means 100 grams of Gold. Gold Petal means 1 gram Gold. and the size and value related to them,
[14:43] Gold. Gold Petal, you can see the complete details of these contracts on the screen.
[14:58] about the Gold future contracts. you will get all the details you need in this PDF. So, we saw the different futures and option contracts in Gold,
[15:11] It will be in the starting, Product Leaflet. if you scroll down a little, it will explain the futures, options, differences, etc.
[15:24] One is Normal Silver, The future you see in Normal Silver, Silver Mini is worth 5 kgs,
[15:36] Similarly, in Base Metals, there are Aluminum, Copper, Lead, Zink, Nickel. and click on the Product Leaflet in MCX website,
[15:49] you will see the future contract, and even the option contract related details. BullDex, MetalDex, EnergyDex.
[16:03] but these are indexes. Click on the Product Leaflet here. but if you want,
[16:16] I am showing you the detailed information like where the PDF copies are, I might have cropped these and presented them in a PPT, you will know how to go about it.
[16:29] You might think there are only two, Because Gold's weightage is 63.7% in index, If you think both Gold and Silver will grow,
[16:45] If you think only Gold will grow, you can trade in multiple future contracts and options related to Gold. you can trade in Silver commodities, futures and options.
[16:58] Bull Dex is Gold and Silver. Metal Dex is Aluminium, Copper, Lead, Nickel, Zinc. See how much weightage these metals have.
[17:11] there is weightage for Reliance, HDFC Bank, Infosys, TCS. In Bank Nifty, there is weightage for KOTAK, Mahindra Bank, HDFC, If they grow, Nifty will grow more.
[17:25] if they grow, index will grow more. 39.74% nearly 40%. If both grow, index will grow.
[17:37] invest in entire index and trade in it. build positions in metals. Both are 50-50% similar.
[17:53] 51% crude oil and 48.93% natural gas. crude oil and natural gas prices are increasing globally. I mean, not long term investment,
[18:09] we can play it with this index. The margin taken for different contracts they take You can find it in any brokerage website.
[18:24] the commodity we want to buy, The link is in the description. Better than equity.
[18:38] If you look at the images of Google, the technical analysis charts don't represent stocks. Because they are less for manipulation.
[18:54] even indicators, They work more because it doesn't become 100%. There won't be 100% probability,
[19:07] technical analysis in commodities is more standardized. fake things, these won't be there You can see Indian commodity prices.
[19:21] dollar strength, all these factors have an impact here. technical analysis has more relevance and importance.
[19:34] Pay attention. People who trade in the commodity market should have an idea about all these. What is GDP?
[19:46] Should we take positive or negative if it grows? that is inflation, how will commodities react?
[19:58] If there is uncertainty related to China, They relate copper to economy more compared to other metals. the Finance Minister,
[20:11] is saying that they want to spend more on infra. they will take housing loans. infra, housing will develop.
[20:23] Then metals and copper will grow. If equity markets react, If economy is good,
[20:35] If the whole world is damaged, will go to safe assets, if my positions are high,
[20:50] Some people are shifting money from there. they will grow. there are metals which will fall.
[21:04] Like crude oil and natural gas. it will impact our economy. And uncertainty in some regions.
[21:17] Because of that, crude oil prices rise. We need to talk about each commodity individually. crude oil, gold and silver.
[21:32] Base metals like nickel, copper, zinc, aluminium. there is less trading activity. what are the sizes,
[21:44] If there is physical delivery, If there is physical delivery, if you buy it physically,
[21:57] That has to be settled. If it is settled in cash, it's okay. There are normal things that are settled in cash.
[22:11] I'll give you the link in the description. Your broker will ask you to close it 5 days before.
[22:24] Or else, they'll ask you to shift to another contract. So, I strongly suggest you to check out the MCX website. you'll find all the data you need.
[22:39] Agri commodities are not used for trading purposes. we can cover crude oil and natural gas in one video. We can cover base metals in one video.
[22:52] What is crude oil? which will get impacted if it raises and which will get impacted if it falls? On which events does the crude oil price raises?
[23:05] Since it the price is raising, is it correct to buy and sell based on the events? Similarly, gold and silver. Important elements are related to these.
[23:19] But, I've already told you about the important events. If we want to make videos from here, You can add one more element to it.
[23:34] crude oil inventory data will be updated. We can make video on the important elements displayed here. We can talk about metals individually.
[23:48] how support and resistance, technical analysis works in commodities by seeing them in charts How we should execute trades and how indicators work. We can make these three videos.
[24:01] I'm thinking that there won't be lots of views for this topic. Because, not just us, when said about stock market, Crude oil, gold, silver, metals won't be discussed
[24:15] But, still, people who are willing to trade in the evening should know about it. I think it's a better option if I want a segment with stability. Shall we continue with the next video?
[24:27] I hope you found this video interesting. If you liked the video, If you want to support our channel further,
[24:41] In fact, I keep telling you about it in Telegram. Instead of going to the websites directly and taking Demat accounts or insurance, it will be an advantage for our channel as well.
[24:56] Finally, friends, did you like our video? please share it. If you think our content is useful for you,
[25:10] I will come back with another interesting video. Jai Hind!